She said: “It is good to see they have acknowledged this is something that has to change and will help them to reduce pension bills and extend working life. It’s not too optimistic a timetable really. Employers just need to know when it’s going to happen.”

Krys said she wanted the government to announce in April 2011 that it will be abolishing the DRA in October 2011 – rather than phasing it out in stages – giving employers time to adapt their policies and practices.

“They should just get rid of it. Upping the age every six months or every year would be slightly ridiculous for employers to cope with,” she said.

Chris Ball, chief executive of The Age and Employment Network, said while he welcomed the government’s decision to remove the DRA, he questioned whether another consultation was needed and said the business world “could have done with some clarity” on the government’s precise intentions.

He said: “I’m not sure we need another consultation, we have had plenty on this. I would have thought the government would be in a good position to move forwards with some confidence now and state pretty clearly what they intend to do.”

Charles Cotton, rewards adviser at the Chartered Institute of Personnel and Development, added: “It is a shame they have swerved a clear decision on the DRA, and have chosen instead to hold yet another consultation on its abolition.

“They should make their consultation swift, and move quickly to bring to an end the absurdity of enforced retirement.”

Michelle Mitchell, director of Age UK, said: “The consultation on phasing out the DRA is another welcome shuffle forward towards ending this unfair and unsustainable law. But to give tens of thousands of older workers the job security they deserve, we need a definitive commitment and timetable.”